Financial Decision : Tottenham Should Build The New Stadium

b) The decision to invest in projects increases the shareholders value of the company. This is consistent with the growth and from the NPV criteria, positive NPV of projects increases the shareholder's value.

In conclusion, capital investment decisions mostly involve choosing between one or more different projects. It is necessary that the individuals involved in making the

(i) We could consider it as a two-stage growth. Consume that the next five years is a stage that the growth rate is stable. Using the Gordon model, the compound growth rate is g = √d05 /d03 -1= 10.05% and p = d (1+g) / (r-g), then get r = d (1+g) / p + g. So r = 12%. And d06 = d05 (1+g) = 9.75p×1.1005 = 10.73p. The fair share price is about £605.56. Compared with the actual share price of £1,125, the fair share price is less than a half. It shows that the company was not healthy.

Valuation Estimates: Actual Price (6/1/07): $21.63 Trailing P/E $9.57 Forward P/E $7.80 PEG $2.92 P/B $54.00 P/EBITDA $28.24 P/FCF $123.39 EV/EBITDA $3.54 Intrinsic Valuations Discounted Dividend Free Cash Residual Income LR ROE AEG Actual $18.40 $29.71 $3.22 $7.21 $8.79

The presence and preference for other sports and access to international league games in North America increase buying power within the industry. Supplier power is moderate; MLS relies on networks to broadcast games with few suppliers to choose from. MLS’s interim dependency on other leagues’ stadiums also increases supplier power.

As the November Meeting approaches, CFO Doug Scovanner is faced with the problem of choosing which of the five controversial projects available to accept. Our task is to assume this role and evaluate each of the projects based upon two major criteria. The first is determining the firm’s financial motives by quantifying the projected value added to the firm and the risk associated with each project. When determining to accept or reject projects based upon adding value, the most helpful instruments we have are Net Present Value (NPV) and the

This paper will explain what is, and how to calculate a weighted average cost of capital of Tesco Plc based on company’s balance sheet1 and cash flow statement.2 The second part will focus on a report on the Tesco’s cash flow over the two year period starting in 2005. In the last part essay will explain what discount rate Tesco Plc. should use when deciding on major investment projects.

4. Stadium Remodel is paramount that the CEC makes this investment failing that the poor state of the facilities would tarnish the image of the brand. The NPV is positive and EBIT.

Watching soccer games from different leagues is so compelling because even though they are from different countries and don’t speak the same language, they still play and respect the game as one. One of the fascinating leagues to watch is the English Premier League because unlike other sports where the teams are set in stone, the English Premier League relegates, drops the three worst clubs, and brings up three new clubs from the lower division to take their place. This demonstrates how lesser known clubs can be rewarded for their hard work. Watching soccer games is different from watching other sports because each club is putting their heart and soul into each individual game. That’s why there are so many fans in the English Premier League because even the smallest clubs are being accounted for. Hence, the English Premier League is, “The biggest, the most visible, the most watched, the most popular in the world” (English Premier

This means that the stadium would need an upgrade for more seats and ultimately a bigger car park due to the stadium being next to a main road. The players and managers would also demand a pay rise due to having to spend so much time away from work with training and also travelling to other states in order to play other teams. Transfer money would also be needed if they wished to invest in a couple of good players to carry them to the top flight, all of this would add up leading to a big demand of money for all the smaller clubs,

The new Greendale baseball stadium, with approximately 47,000 seats, is set to be built. The investors of the new stadium are now looking for well experienced construction companies who would be able to handle this fairly large project. The G&E Company has therefore prepared a bid to build this new stadium. The president of the G&E Company has made calculations that the company could net as much as $2 million if it manages to land this project. To be able to convince the investors of the Greendale stadium, the G&E Company has asked us to set up a well-developed project plan, which will contain vital information about the project, to be able to meet and even exceed the investors’ minimum requirements.

C. The new project brings the additional cash flow that raises the NPV and thus the fair value of the share has been appreciated. The investing into the new project will be a welcome note if the cash inflow happens as per the details provided in the question.

The aim of the report is to use different valuation techniques to see if the current share price of Tesco plc is fair, undervalued or overvalued. Some of the findings will be compared with other firms in the same industries and share holders will be informed on whether they should buy, hold or sell.

Swansea City 's revenue function indeed clarified the franchise 's choice of division, but this only became evident after calculating optimum talent levels. Swansea 's talent in relation to those of other teams was identified as being the primary factor influencing win percentage, which, as described above, in turn had the greatest effect upon the franchise 's revenue earning capability. So, to begin talent

Overall, the ranking lists shown that the project of Strategic Acquisition should be accept by the board directors, because it has a highest IRR and NPV, the second high Profitability Index and 5 years payback, although the initial investment is really big but still the return is worse to do. The total investment of this project will be EUR55 million. The second recommend project will be the project of Southward Expansion. This project has a high IRR and NPV, the initial investment is EUR30 million, it is the 3rd in the ranking list of Project Spending and it is the 2nd in the ranking list of Project Net Cash Flow about EUR56.25 million, The payback is 5 years too. Because the project of Effuent-Water Treatment at Four Plants is highly recommend so right now we have total capital budget EUR91 million. Based on all the ranking list, the project of the Artificial Sweetener will be the last recommendation for the new year capital budget. This project has the 3rd highest IRR and NPV, the return is the 4th in the list about EUR42.75 million and payback is also 5 years. They expenditure for this project is EUR27 million. So the total budget will be EUR118 million include Strategic Acquisition, Southward Expansion, Artificial Sweetener and Effuent-Water Treatment at Four Plants.